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Well you will either need to get an Airport Extreme card for your iMac or get a wireless card or adapter for the PC.

You will need to get a wireless router (LinkSys, D-Link, Netgear and Apple are the most recommended)...Probably the most cost efficient way to do this is to.
Buy a 802.11b router and hook that up to your mac with the cable modem plugged into it. And get a Wireless Card/Adapter for the PC. This is probably the easiest also since you can use a USB card for the PC

More expensive would be getting a 802.11g router and the Airport Extreme Card (which requires installation) and hooking up the cable modem and router at the PCs end

Yet would it be possible to hook the router to the modem in one part of the house, and have it transmit to the PC and Mac in different rooms, and just get a card for the Mac and one for the PC, so the router & modem arent plugged into any of the computers?

You see I currently have the modem hooked to the Mac in one part of the house, but would like to move the Mac into my room (the PC is in my sisters room). So I would have to but 2 cards-1 for Mac, 1 for PC?

Yes that would work fine. You get the best speeds and easiest setups by having it hooked into the router. When you set it up I recommend you hook up either the pc or the mac to the router before you move the computer or router so that you can set it up while you are hooked in to make the switch to wireless easier